All Forum Posts by: Freeman Schultz

I am watching an episode of "The Office" where Dwight now owns the building that the Scranton branch of Dunder Mifflin. One of the running jokes is that Dwight has installed motion sensor lights in the the office in order to cut down on electricity. Every time the lights shut off, everyone has to wave their arms and jump up and down to activate them. I know that self storage facilities install them in their hallways and in some office buildings they install them in their restrooms. I am wondering has anyone installed in their hallways and does it really cut down on electricity costs?

Thank you everyone for your responses.

I have a better understanding how a landlord gets compensated.

It is also really important to talk to a CPA to understand the tax benefits.

I get it now. That makes sense. 

Thank you. That makes it very simple understand.

However, now that I am thinking about it, is their a special way the landlord gets paid? Do they just write a check for themselves

from the account that collects the rent? 

 Thank you again. I am beginning to understand how this works. You get taxed on the income, but depreciation lessens the pain.

Thank you for the response.

Correct me if I am wrong. In regards to the taxes, a landlord can use depreciation to deal with them?

How does a landlord get paid? Do they get paid a salary? What are the tax liabilites?

I have been talking to a bunch of landlords about the rule that applicants must have an income that is at least  40x the monthly rent. Some of them are complete  sticklers to that rule. But other landlords leave a little wiggle room.  I know one landlord who will let it slide if their income goes past 50%. For example, if the rent is 2500 and the applicant has an income of $60,000, this landlord will rent the apartment out to that tenant. What do you all think of that rule?

Wow. That is a lot to think about. Thank you all for your responses.

If a tenant passes all the requirements and is willing to pay a year up front are there any special tax considerations a landlord should be aware of? For example, if the lease starts on 2017 and ends in 2018, should the one year payment be broken up in two payments so one is for 2017 and the other is 2018?